PHOENIX — Tax-filing is expensive and time consuming, but under a new pilot program that Arizona entered into, Arizonans may be able to file their taxes for free.
On Tuesday, Gov. Katie Hobbs announced that Arizona will enter the IRS Direct File Pilot Program -- one of a select few states participating in the new measures.
Eligible taxpayers will be able to electronically file their federal and state tax returns directly with the IRS.
VERSIÓN EN ESPAÑOL: ¿Cansado de pagar para que le preparen sus impuestos? Los arizonenses podrían calificar para un nuevo programa gratis del IRS
Eligibility for the pilot program will initially be limited by types of income, tax credits and deductions that the program can initially support, the IRS said. The scope of the program is still being finalized, but taxpayers can expect it to include:
- Income Reporting
- W-2 wage income
- Social Security and railroad retirement income
- Unemployment compensation
- Interest of $1,500 or less
- Credits
- Earned Income tax credit
- Child tax credit
- Credit for other dependents
- Deductions
- Standard deduction
- Student loan interest
- Educator expenses
The program will begin in January 2024. More information about the program will be announced as the IRS continues to finalize the details.
“Tax-filing is expensive and time consuming, but I am taking action to make it free and easy for Arizonans,” said Gov. Hobbs. “Arizona is one of the first states to participate in this program and I’m proud that we are putting money back into taxpayer pockets and making filing convenient and easy.”
Arizona, California, Massachusetts and New York are integrating their state taxes into the program. Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming -- which do not have state income taxes -- are also eligible for the Direct File pilot.
To read more about the program, click here.
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